The exercise, however, proved a public relations disaster. Even at the launch, Lady Margaret Thatcher draped her handkerchief over an offending model.

Mr Eddington has since announced a return to British livery, reintroducing the Union Flag on each tailfin.

Merger attempts

The unfortunate Mr Ayling, who was ousted in March 2000, was also made the scapegoat for a failed merger with American Airlines, which ran into regulatory problems.

The airline has since attempted to revive the merger, announcing early in August that it had sought US antitrust immunity for a new alliance.

This is the companies' second attempt at cementing their relationship in three years.

They both belong to the oneworld alliance, launched in February 1999. BA uses the alliance, which includes Cathay Pacific Airways, Qantas and four other airlines, to share marketing costs and airport facilities.

Problems in the industry

Despite the advantages of the alliance, BA has worked hard to pull off a more wide-ranging merger.

In September 2000, BA and Dutch carrier KLM ended four months of merger negotiations without agreement, saying they had been unable to resolve a number of issues.

BA's determination to continue to strengthen its ties with American Airlines is symptomatic of problems in the industry as a whole.

Analysts have long argued that airlines need to consolidate so that they can better manage industrywide problems such as over-capacity and rising fuel costs.

Cuts

The attacks on the US on 11 September have been the last straw for the beleaguered airline industry which is suffering from the economic slowdown and falling passenger numbers.

Like many of its rivals, BA says it has been forced to cut jobs, reduce its fleet and the number of scheduled flights.

But despite its problems, the airline is light years away from its roots and the pioneering days of civil aviation following World War I.

In August 1919, BA's forerunner company, Aircraft Transport and Travel launched the world's first daily international air service between London and Paris.

The initial flight carried one passenger and cargo that included newspapers, Devonshire cream and grouse.

Last year more than 48 million passengers travelled on 529,807 flights operated by BA.

But as long as the economic conditions remain tough, BA will struggle to maintain the profits that it was once accustomed to.